Amazon reaches $1 trillion in market cap

Back in 1994, Jeff Bezos was selling his first books from his garage. Today his company has reached the value of 1trn in market cap.

Although it reached this milestone a month after Apple, Amazon grew at a faster rate - for instance according to the Wallstreet journal, Amazon just took 16 days as opposed to Apple's 622 to grow from $600bn to $700bn.

Furthermore Apple managed to reach the trillion market cap in 38 years whilst it took Amazon just 21 years.

The major reason for this was because Amazon spent a lot of years reporting losses or negligible profits as its policy was to reinvest into the company for the benefit of future growth. This has been achieved with the latest quarterly figures showing nearly $53bn in sales and a record quarterly profit of $2.5bn.

Year to date, Amazon price is up 70% as opposed to Apple's 30% increase.

The price has now crossed the resistance psychological level of 2000 with the probability to continue its way up in the coming months as Amazon looks to diversify more its business and invest in the health, advertisement and artificial intelligence sectors.

The race to reach $10trn in market cap has just started!

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